Centrenergo, Turboatom after reorganization will have to redeem shares from dissenting shareholders

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PJSC Centrenergo (Kyiv) and PJSC Turboatom (Kharkiv) after changing the type of company to private from public will be obliged to redeem shares from those who disagree with such a decision of the shareholders, according to a press release from the National Commission on Securities and the Stock Market.

"The change in the type of company gives the shareholders, who do not agree with this decision, the right to demand the purchase of their shares by the company. The companies, in turn, are obliged to redeem the shares at an average price that has developed in the market for the past three months," the document says.

The commission draws attention to the fact that the state owns 78% and 75% respectively in the charter capital of PJSC Centrenergo and PJSC Turboatom.

"Thus, the state as the major shareholder of these companies could be obliged to redeem shares from other shareholders. According to preliminary estimates, the cost of purchase of securities from all private shareholders could reach UAH 2 billion," the press release said.

The commission said the law stipulates that redemption should occur within two months after the relevant shareholders' meeting.